For franchisors and franchisees alike, growing through multi-unit ownership seems like a “no-brainer”. Yet past failures tell us it’s harder than it looks? Why? It may not be what you think. This is the third of my four-part series that busts 4 great myths of multi-unit expansion.
Today’s great operators know how to be successful in the model. Why not expand their reach to more territories and we’ll grow together? Franchisees will have to work harder, but they’ll make more money and increase their ROI (and we all know that profits are the key to franchise-happiness). Franchisors will have fewer people to support, better operators and less headaches. The hardest part is getting the financing in place. Once that’s done, the rest falls in line. Right? Wrong on four counts. It’s time to bust four great myths of multi-unit franchising. Keep reading to learn the truth.
Myth #3: Multi-Unit Franchisees Must Work Harder than Single-Unit Owners
A good franchise provides systems and structure that promote efficient and consistent results. This includes marketing and operational systems as well as information systems that enable multi-unit operators to manage teams remotely. Cloud-based CRM or POS systems that measure the drivers of success (the key things franchise operators MUST GET RIGHT) are essential for scalable, remote management. Technology investments can pay huge dividends to franchisors seeking to grow through multi-unit ownership.
The multi-unit owner’s most important task then is to select, place, nurture and support their operations teams and insure the franchise recipe is followed. If it’s a good model with good systems for monitoring KPIs, this approach works. No longer is the owner tempted to work into the wee hours of the night to make operational deadlines, because it’s not their job. Instead they rely on their mastery of KPIs and communication skills to build a strong team. They define expectations through written, measurable goals and established effective meeting agendas and cadence to monitor results and coach up performance. No more spinning plates, being busy just being busy. Work-life balance is now within reach.
Watch for three more multi-unit myths to bust in the coming days!
ICFE Special Session on Successful Multi-Unit Expansion
My colleagues and I will be presenting a full day session entitled: Advanced Financial Essentials: Driving Profitable Growth Through Multi-Unit Expansion at the Institute of Certified Franchise Executives special sessions on Saturday, February 8th at the IFA conference in Orlando. If you are seeking to expand your network through multi-unit ownership, I encourage you to join us!
Follow this link for more details and registration options: